BT to Scrap Traditional Phone Network

British Telecom PLC announces plans to move to IP telephony for most of its 28 million customers by 2008

LONDON (AP) _ British Telecommunications PLC plans to gradually
shut down its traditional "circuit-switched" telephone network in
favor of technologies that route calls over the Internet at a lower
cost, with more features.
The new system _ to cost an estimated 10 billion pounds ($18.2
billion) _ is expected to be operational for most of BTs 28
million customers by 2008, the company said Wednesday.
The change will involve electronic and computer-system changes,
not construction work such as digging up roads or pulling down
phone lines, BT said.

The new program "will deliver our vision of a converged,
multimedia world where our customers can access any communications
service from any device, anywhere _ at broadband speed," Paul
Reynolds, chief executive of BT Wholesale, told reporters.

It would give each subscriber the ability to have one phone
number, and the same bill, for mobile and fixed-line services. Matt
Beal, in charge of implementing the changes, also said in an
interview with the British Broadcasting Corp. that the new system
would bring customers such features as family conference calls,
video streaming and voice-activated phones.
BT said that by the 2008-2009 fiscal year, the new network would
save the company about 1 billion pounds ($1.8 billion) annually.